How To Earn $500 A Month From Alphabet Stock Ahead Of Q2 Earnings

Alphabet Inc. GOOGL GOOG will release earnings results for the second quarter, after the closing bell on Wednesday, July 23.

Analysts expect the Mountain View, California-based company to report quarterly earnings at $2.17 per share, compared to $1.89 per share in the year-ago period. Alphabet projects to report quarterly revenue of $93.72 billion, compared to $84.74 billion a year earlier, according to data from Benzinga Pro.

The Google parent company has beaten analyst estimates for revenue in 10 straight quarters. It has also beaten analyst estimates for earnings per share in nine straight quarters.

With the recent buzz around Alphabet, some investors may be eyeing potential gains from the company's dividends. As of now, Alphabet offers an annual dividend yield of 0.44%, which is a semi-annual dividend amount of 21 cents per share (84 cents a year).

So, how can investors exploit its dividend yield to pocket a regular $500 monthly?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $1,366,742 or around 7,143 shares. For a more modest $100 per month or $1,200 per year, you would need $273,425 or around 1,429 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.84 in this case). So, $6,000 / $0.84 = 7,143 ($500 per month), and $1,200 / $0.84 = 1,429 shares ($100 per month).

Note that the dividend yield can change on a rolling basis, as both the dividend payment and the stock price fluctuate over time.

How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.

For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).

Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.

GOOGL Price Action: Shares of Alphabet gained 0.7% to close at $191.34 on Tuesday.

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